CNCACCOUNTS LIMITED

Executive Summary

CNCACCOUNTS LIMITED exhibits elevated financial risk evidenced by negative net assets and current liabilities exceeding current assets, raising concerns over solvency and liquidity. While the company remains compliant with filings and is managed by a single consistent director, the absence of employees and shrinking asset base suggest operational challenges. Further due diligence into cash flow, business operations, and director support is recommended to fully assess sustainability.

CNCACCOUNTS LIMITED - Analysis Report

Company Number: 13389255

Analysis Date: 2025-07-19 12:55 UTC

1. Risk Rating: HIGH
   The company shows a deteriorating financial position with net liabilities reported in the latest accounts, negative net current assets, and overall negative equity. These indicators point to significant solvency risk.

2. Key Concerns:

• Negative Net Assets and Equity: The 2024 accounts report net assets and shareholders' funds of -£13,354, indicating liabilities exceed assets, a critical solvency red flag.
• Negative Net Current Assets (Working Capital Deficit): Current liabilities exceed current assets by £17,194, suggesting potential liquidity constraints and difficulty meeting short-term obligations.
• Declining Asset Base and Cash Position: Fixed and current assets have decreased significantly from previous years, signaling possible cash flow issues and operational challenges, compounded by no reported employees which raises questions about operational scale and sustainability.

3. Positive Indicators:

• Compliance with Filing Obligations: The company’s accounts and confirmation statements are up to date with no overdue filings, demonstrating regulatory compliance and governance discipline.
• Single Director with Control: Mr. Vinod Chohan controls the company and has been consistent since incorporation, which may support stable decision-making.
• Micro-entity Status: Simplified reporting requirements reduce administrative burden and may reflect a deliberately small operational scale.

4. Due Diligence Notes:

• Investigate Financial Activities and Cash Flow: Examine detailed cash flow statements (if available) and understand the nature of liabilities to assess whether the company can meet obligations or is reliant on external financing.
• Review Business Model and Client Base: Clarify how the company generates revenue and sustains operations without employees, and whether it outsources work or operates as a sole director consultancy.
• Assess Director’s Plans and Financial Support: Determine if the director has injected funds or plans to restructure liabilities, and whether external funding or guarantees are in place to mitigate solvency risks.
• Confirm Absence of Audit and Impact: As a micro-entity, the accounts are unaudited—consider requesting more detailed financial information or third-party verification to validate reported figures.